Perdoceo Education (PRDO) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: 1.75%
• Average Volume (3M): 443.00K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.49
• Revenue Growth: 15.99%
• EPS Growth: 13.25%
• Country: US
• Employees: 5,690
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 64,953,380
• 10 Day Avg. Volume: 471,065
• 30 Day Avg. Volume: 443,002
• PEG Ratio: 8.71
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 2.55
• P/FCF Ratio: 11.07
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: 6.63
• 1Y Price Target: $42.00
• Price Target Upside: 35.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $35.00 ▲(13.31% Upside)

Perdoceo Education's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. While the company is fundamentally sound, technical indicators suggest bearish momentum, which tempers the overall score. The valuation is fair, providing a balanced view of the stock's potential.

Positive Factors

Revenue Growth

Strong revenue growth driven by strategic acquisitions and enrollment expansion indicates robust market demand and effective business strategies.

Enrollment Growth

Sustained enrollment growth reflects successful student retention and engagement strategies, ensuring a stable revenue base and market presence.

Financial Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Negative Factors

Gross Margin Decline

A declining gross margin could indicate rising costs or pricing pressures, potentially impacting long-term profitability if not addressed.

Cash Flow Efficiency

Suboptimal cash flow efficiency suggests room for improvement in converting earnings into cash, which is crucial for sustaining operations and funding growth.

Enrollment Variability

Potential enrollment variability could lead to unpredictable revenue streams, impacting financial stability and planning.

Perdoceo Education Business Overview & Revenue Model

Company Description

Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. The company operates in two segments, Colorado Technical University and American InterContinental University. It offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, and criminal justice, as well as business studies, information technologies, education, and health sciences. The company also operates intellipath, a personalized learning platform; and a mobile application and two-way messaging platform. As of December 31, 2021, it had a total student enrollment of approximately 40,400 students. The company was formerly known as Career Education Corporation and changed its name to Perdoceo Education Corporation in January 2020. Perdoceo Education Corporation was incorporated in 1994 and is based in Schaumburg, Illinois.

How the Company Makes Money

Perdoceo Education generates revenue primarily through tuition and fees paid by students enrolled in its degree programs. The company benefits from multiple revenue streams, including traditional tuition for on-campus and online courses, as well as ancillary fees related to course materials and student services. Additionally, Perdoceo may receive funding through federal and state financial aid programs, which can significantly contribute to its revenue. Partnerships with various educational organizations and employers can also enhance its offerings and attract more students, further solidifying its financial performance. The combination of a growing enrollment base, effective marketing strategies, and a focus on student retention are key factors contributing to the company's earnings.

Perdoceo Education Financial Statement Overview

Summary

Perdoceo Education demonstrates strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is solid, with low leverage and strong equity ratios, providing financial stability. While liquidity management could be improved, the company's financial trajectory appears positive.

Income Statement

Perdoceo Education has demonstrated strong revenue and profit growth over the years, with a notable increase in revenue from $681 million to $726 million in the TTM period. The gross profit margin remains robust at 87.5%, while the net profit margin improved to 20.9% in the TTM period. EBIT and EBITDA margins are also healthy, indicating efficient cost management and profitability. Such positive trends indicate a strong financial performance in the education sector, which often faces fluctuating demand.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.07, reflecting minimal leverage and financial risk. Return on equity is impressive at 15.6%, showcasing effective utilization of shareholder funds. The equity ratio is strong at 76.5%, indicating a solid financial foundation with a high proportion of assets financed by equity. These factors contribute to the company's financial stability, although there is room for improving liquidity management.

Cash Flow

Perdoceo Education's cash flow demonstrates stability and growth, evidenced by a 6.4% increase in free cash flow in the TTM period. The operating cash flow to net income ratio is 1.13, indicating that operating cash flows are sufficient to cover net income. Furthermore, the free cash flow to net income ratio is 1.10, which highlights the company's ability to generate cash beyond net earnings. Such metrics indicate strong cash generation and healthy financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	768.84M	681.26M	710.00M	695.21M	693.03M	687.31M
Gross Profit	606.58M	545.76M	579.68M	578.49M	584.29M	575.55M
EBITDA	238.93M	215.47M	209.41M	152.37M	165.78M	158.33M
Net Income	154.44M	147.59M	147.65M	95.87M	109.64M	124.26M
Balance Sheet
Total Assets	1.29B	1.24B	1.01B	957.37M	847.43M	721.52M
Cash, Cash Equivalents and Short-Term Investments	637.99M	568.92M	603.14M	508.72M	494.19M	406.36M
Total Debt	124.54M	131.54M	27.05M	33.84M	44.95M	53.19M
Total Liabilities	309.76M	277.50M	165.90M	231.52M	197.32M	165.61M
Stockholders Equity	984.63M	959.54M	841.42M	725.85M	650.11M	555.91M
Cash Flow
Free Cash Flow	205.39M	156.97M	105.61M	135.57M	180.66M	170.19M
Operating Cash Flow	212.48M	161.59M	112.03M	148.19M	191.12M	179.96M
Investing Cash Flow	-54.90M	-107.78M	-88.51M	-326.75M	54.32M	-165.91M
Financing Cash Flow	-92.79M	-41.08M	-23.38M	-27.73M	-29.95M	-13.05M

Perdoceo Education Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDO, the sentiment is Negative. The current price of 30.89 is below the 20-day moving average (MA) of 35.11, below the 50-day MA of 34.91, and above the 200-day MA of 30.17, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 27.79 is Positive, neither overbought nor oversold. The STOCH value of 14.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRDO.

Perdoceo Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRA	―	$1.78B	15.52	6.89%	3.22%	4.31%	-1.08%
PRDO	―	$2.01B	13.41	16.39%	1.75%	15.99%	13.25%
ATGE	―	$3.47B	14.35	17.38%	―	12.24%	52.97%
APEI	―	$583.75M	30.63	10.20%	―	5.50%	338.59%
LOPE	―	$5.15B	22.21	30.77%	―	6.52%	11.72%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	―	$586.21M	40.39	8.27%	―	14.53%	75.66%

Perdoceo Education Corporate Events

Perdoceo Education Corp’s Earnings Call Highlights Growth

Perdoceo Education Corporation’s recent earnings call conveyed a positive sentiment, underscoring strong financial performance and significant enrollment growth across its institutions. The company expressed optimism about future growth, bolstered by a favorable regulatory environment. However, there were concerns regarding enrollment variability at the AIU System and potential tax implications.

Perdoceo Education Reports Strong Q2 2025 Results

Perdoceo Education Corporation is a provider of postsecondary education programs, operating in the higher education sector with a focus on online, campus-based, and hybrid learning models through its institutions such as Colorado Technical University, American InterContinental University System, and University of St. Augustine for Health Sciences.